Organisational change
Change is an inevitable part of doing business today. We are committed to acting responsibly towards our employees whenever we implement changes.
A changing business
Since 2004, as part of our One Unilever programme, we have made significant changes.
For example, simplification and de-layering of the business has resulted in a 45% reduction in our senior leadership population since February 2005.
We are continuing to build capability skills and external perspectives by bringing in senior leaders from the external market. For example, 12% of our current senior leadership population has joined from outside the business since 2004.
Divestments & acquisitions
During 2009 we divested our remaining interest in JohnsonDiversey. We acquired a global professional hair product business (TIGI), an ice cream business in Romania and the Baltimor sauces business in Russia. In September we announced a binding offer to acquire the personal care business of Sara Lee, including brands such as Sanex, Radox and Duschdas. We expect to complete the Sara Lee acquisition during 2010 following regulatory approval and due consultation with European employee works councils.
New R&D structure
2009 saw the implementation of the One Unilever R&D organisation previously announced in 2008. This brought our 6 000 plus R&D professionals together in one unified organisation and created an integrated portfolio of projects linking projects from research through to development and into market launches. Geneviève Berger was appointed as our first Chief R&D Officer in 2008.
This R&D organisation is designed to accelerate the delivery of ground-breaking advances, increase the focus on fewer, bigger innovations and optimise the balance between short- and long-term projects. In 2009 we saw the first results of this with a significant increase in the number of large innovations landing in the marketplace and the creation of a number of critical research projects that span categories and will be the foundation for product innovations in the future.
Outsourcing
In 2010 we have created a new global business unit integrating the services of IT, Human Resources, Finance, Information Management and Workplace & Travel Services as a step towards creating an agile and cost-competitive organisation for the future. The new unit will continue to use a combination of in-house and outsourced services to meet Unilever’s evolving needs.
A responsible approach
The number of people we employ worldwide totalled 163 000 at the end of 2009, down from 174 000 in 2008.
In implementing our change programmes we always seek to uphold our values and treat people with respect, integrity and fairness, as embodied in our Corporate Purpose and Code of Business Principles. We follow agreed consultation processes. From employee consultation, we recognise that this level of organisational change is a source of concern and we take these concerns seriously. Thus our approach is to communicate regularly to ensure that people understand what is happening and, where redundancy is necessary, to make every effort to help employees find alternative employment.
We seek to act in a socially responsible manner when we close plants or dispose of businesses. As a general principle, we aim to safeguard the interests of our employees. Disposal of a company is preferable to closure, but if closure is unavoidable, other mechanisms are used to mitigate the effects on employees. Depending on local legislation, culture and circumstances, we seek to consult on measures to manage these effects.
Two examples of our approach are:
The Netherlands
Unilever closed three factories in the Netherlands in 2008. The closures affected Delft, Loosdrecht and Vlaardingen, resulting in just over 470 redundancies. Of these, 100 employees (‘Group of 100’) were given a later leaving date of April 2009.
Unilever organised training and outplacement to help those affected by redundancy to find new employment. Just under 300 employees participated in our ‘Right Outplacement’ programme, while 60 were awarded a certificate recognising their competencies. From the Group of 100, more than half found new employment before April 2009.
Factory | Number of employees facing redundancy | Number of employees who found new employment before the factory closed | Number of employees who did not find new employment before the factory closed | Number of employees given delayed redundancy (Group of 100) |
Delft | 174 | 125 | 14 | 35 |
Loosdrecht | 187 | 127 | 15 | 45 |
Vlaardingen | 112 | 76 | 16 | 15 |
Total | 473 | 328 | 45 | 95* |
*A further five employees retired
Germany
When Unilever Germany announced 190 redundancies in 2008 it agreed with the local works council to set up a transfer team to look after those affected and help them to find new employment, either within or outside Unilever.
Employees were offered practical job hunting advice, including CV writing, assistance filling out application forms, interview coaching and help in identifying their strengths and weaknesses. "While we can't find them a new job, we give them the support they need to help them in their hunt," explained the head of Unilever Germany's TransFair Team. "We help them realise they may have the appropriate skills to find a job in a different area, or even start their own business."
If attempts to find alternative employment were unsuccessful, the Unilever team worked with outplacement partners to provide training opportunities with other organisations. The support can last for up to 12 months, while the minimum period is three months.
The TransFair Team also placed employees on trial internships in other departments within Unilever Germany to develop their skills and determine their suitability for different roles.
